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Originally Posted by e30kawi
To the op, I wish someone would have gave me this advice when I first bought my home, but go for the 15 year note if you can swing it. That 30 year mortgage is a scam. We refinanced to a 15 year note a couple years ago, what a difference it made every month. Actually closing on our second refinance this Saturday.
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You pay more interest, but it isn’t really a scam. Take the extra money you are putting into a 15 year note at 4%, and with a market average return of 7%, a person could build 3% interest.
Quote:
Originally Posted by Adam_L
Historically, rent tends to only increase in price (cost) over time.
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Over the long term it does but it is proportional to inflation. Watch the video I posted above too; it explains how a renter could possibly save/invest more than a home buyer builds in a home. Remember that the average home owner is renting money to buy, something they pay a lot of interest on. They also can pay HOA fees which increases over time, property tax which increases over time, insurance which increases over time, and home repairs. Also, buying can limit job mobility. Overall, it ends up better for most for investing, but it isn’t the smart thing for some people’s lifestyle or personality, and doesn’t guarantee a better outcome.